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How to do tax write offs

 
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2 Replies

How to do tax write offs

what do you mean? please clarify what you are asking about

JohnB5677
Expert Alumni

How to do tax write offs

 Tax write-offs  is a general term that indicates ways to reduce your taxes. There are two ways that this can happen:

 

Tax deductions: Subtract tax deductions from your income before you figure the amount of tax you owe.  A deduction will reduce your tax by reducing the amount of money you are being taxed on.

 

Deductions for Individuals

Work Related Deductions 

Itemized Deductions

Education Deductions

Health Care Deductions

Investment Related Deductions

IRS Deductions & Credits

 

Tax Credits: Subtract tax credits from the amount of tax you owe. There are two types of tax credits:

  • A nonrefundable tax credit means you get a refund only up to the amount you owe.
  • A refundable tax credit means you get a refund, even if it's more than what you owe.

The two most common Credits are:

  • Child tax Credit
  • Earned income tax Credit

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